The interim condensed consolidated financial statements for the six months period ended 30 June 2016 have been prepared in accordance with International Accounting Standard (‘IAS’) 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all of the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2015.

The interim condensed consolidated financial statements do not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the full year is based on the statutory accounts for the financial year ended 31 December 2015. A copy of the statutory accounts for that year, which were prepared in accordance with International Financial Reporting Standards (‘IFRS’) issued by the International Accounting Standard Board (‘IASB’), as adopted by the European Union as they apply to financial statements of the Group for the year ended 31 December 2015, have been delivered to the Register of Companies. The auditors’ report under section 495 of the Companies Act 2006 in relation to those accounts was (i) unqualified, (ii) included a reference to a matter to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Going Concern Basis

Over the next year from the approval of the financial statements, US$158,150 thousand of debt amortisation falls due for repayment. Iron ore pricing levels have been volatile and could reduce to levels where, without associated cost relief, the Group’s net cash flow generation would only be able to meet these payments over a longer period triggering cross default across part or all of its debt facilities.

The Group expects to be able to repay its facilities and meet its liabilities as they fall due based on current forecasts and also expects, that if necessary, it would be able to agree amendments to relevant facilities to make repayments over a longer period or obtain additional financing. As a result the financial statements have been drawn up on a going concern basis.

The impact of the uncertainty of the future level of the iron ore price and operating cost inputs are material uncertainties and may cast significant doubt upon the Group’s ability to meet its debt amortisation obligations as they fall due and to continue as a going concern. Under these circumstances it would be necessary to restate amounts in the balance sheet, which will materially change the amounts and classification of figures contained in the financial statements.

Independent Review Report to Ferrexpo PLC (extract)

Emphasis of matter –Going concern

In forming our opinion, which is not qualified in this respect, we have also considered the adequacy of the disclosures made in note 2 to the financial statements concerning the Company’s ability to continue as a going concern. The conditions described in note 2 indicate the existence of a material uncertainty which may cast significant doubt about the Company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern.